California Public Employees’ Retirement System

P.O. Box 942701 Sacramento, CA 94229-2701 (888) CalPERS (or 888-225-7377)

TTY: (877) 249-7442 www.calpers.ca.gov

Reference No.: Circular Letter No.: 310-024-17

Distribution: I, IIA Special:

Circular Letter May 5, 2017

TO: EMPLOYERS COVERED BY CALPERS, EMPLOYEE ORGANIZATIONS AND OTHER INTERESTED PARTIES

SUBJECT: MEETING NOTICE OF THE CALPERS BOARD OF ADMINISTRATION AND

ITS COMMITTEES The Board of Administration of the California Public Employees’ Retirement System (CalPERS) and its committees will meet on May 15 through 17, 2017. The meetings will be held in the CalPERS auditorium located in Lincoln Plaza North, 400 Q Street, Sacramento, California, unless otherwise noted. Copies of the agendas for the meetings are attached. This notice and the agendas are also available on our website, www.calpers.ca.gov. The estimated start times for each meeting are set forth below. In some cases, a portion of the meeting may be held in closed session. Please refer to the attached agendas for additional information. Monday, May 15, 2017

8:30 a.m. Board of Administration (Closed Session Only) 8:45 a.m. Investment Committee (Closed Session Only) 9:00 a.m. Investment Committee

Tuesday, May 16, 2017

8:30 a.m. Pension & Health Benefits Committee (Closed Session Only) 10:00 a.m. Finance & Administration Committee 1:00 p.m. Pension & Health Benefits Committee

Wednesday, May 17, 2017

8:30 a.m. Board of Administration (Closed Session Only) 9:00 a.m. Board of Administration

Live broadcasts of open session meetings of the Board and its committees are available for viewing at www.calpers.ca.gov. Please refer to the website for information on attending meetings and presenting public comment. The meeting facilities are accessible to persons with disabilities. Requests for disability-related modification or accommodation require a minimum of 72 hours’ notice and may be requested by calling (916) 795-3065 (voice or TTY).

Circular Letter No.: 310-024-17 May 5, 2017 Page 2

Questions regarding the meetings may be referred to Cheree Swedensky at (916) 795-3128 or cheree.swedensky@calpers.ca.gov. MARCIE FROST Chief Executive Officer Attachment

Board of Administration

Meeting Agenda

Robert F. Carlson Auditorium May 15, 2017 Lincoln Plaza North 8:30 am 400 P Street Sacramento, CA

BOARD MEMBERS

Rob Feckner, President Richard Gillihan Bill Slaton Henry Jones, Vice President Dana Hollinger Theresa Taylor Michael Bilbrey JJ Jelincic Betty Yee John Chiang Ron Lind Richard Costigan Priya Mathur

AGENDA

Closed Session 8:30 am

1. Chief Executive Officer’s Briefing on Performance, Employment, and Personnel Items

(Government Code sections 11126 (a)(1), (e), and (g)(1))

Notes

1) Items designated for Information are appropriate for Committee Action if the Committee wishes to take action. Any Agenda Item from a properly noticed Committee meeting, held immediately prior to this Board meeting, may be considered by the Board.

2) The hour designated as the earliest starting time for this meeting is not intended to communicate the expected duration (or ending time) of the preceding meeting.

3) Public comment may be taken on any agenda item. There is a three-minute limitation on each public comment, unless otherwise directed by the Committee Chair.

Meeting Agenda Investment Committee

Page 1 of 3

Investment Committee

Meeting Agenda

Robert F. Carlson Auditorium May 15, 2017 Lincoln Plaza North 9:00 a.m. 400 P Street Sacramento, CA

Or upon adjournment of the Closed Session — Whichever is later

COMMITTEE MEMBERS

Henry Jones, Chair Rob Feckner Priya Mathur Bill Slaton, Vice Chair Richard Gillihan Theresa Taylor Michael Bilbrey Dana Hollinger Betty Yee John Chiang JJ Jelincic Richard Costigan Ron Lind

AGENDA

Closed Session 8:45 a.m.

Or Upon Adjournment or Recess of Board Closed Session, Whichever is Later

Ted Eliopoulos 1. Chief Investment Officer's Briefing on Market and Personnel Items (Government Code sections 11126(a)(1) and 11126(c)(16))

Open Session

9:00 a.m.

Or Upon Adjournment or Recess of Closed Session, Whichever is Later

1. Call to Order and Roll Call

Ted Eliopoulos 2. Executive Report – Chief Investment Officer Briefing

Ted Eliopoulos 3. Consent Items

Action Consent Items:

a. Approval of the April 17, 2017 Investment Committee Meeting Minutes

Ted Eliopoulos 4. Consent Items

Information Consent Items:

a. Annual Calendar Review

b. Draft Agenda for the June 19, 2017 Investment Committee Meeting

c. Monthly Update – Performance and Risk

d. Monthly Update – Investment Compliance

Meeting Agenda Investment Committee

Page 2 of 3

e. Legislation - Federal Investment Policy Representative Update

Information Agenda Items

5. Asset Allocation

Eric Baggesen

Rose Dean, Wilshire Associates Consulting

Allan Emkin, Pension Consulting Alliance

David Altshuler, StepStone

a. Private Asset Class Roles and Benchmarks

6. Program Reviews

Simiso Nzima Dan Bienvenue Anne Simpson

a. Governance and Sustainability Update

7. Total Fund

Wylie Tollette a. Investment Office Cost Effectiveness

Wylie Tollette b. Investment Office Roadmap and Target Operating Model Update

Ted Eliopoulos 8. Summary of Committee Direction

9. Public Comment

Closed Session

Upon Adjournment or Recess of Open Session

(Government Code sections 11126(a)(1), (c)(16) and (e))

1. Call to Order and Roll Call

Ted Eliopoulos 2. Consent Items

Action Consent Items:

a. Approval of the April 17, 2017 Investment Committee Closed Session Minutes

Ted Eliopoulos 3. Consent Items

Information Consent Items:

a. Closed Session Activity Reports

1) Status of Action Items Not Yet Reported

2) Items Completed Under Delegated Authority

3) Disclosure of Placement Agent Fees: Proposed Investments

Meeting Agenda Investment Committee

Page 3 of 3

4) Investment Proposal Status Reports

Action Agenda Items

4. Total Fund

Wylie Tollette

Kit Crocker

a. Senate Bill 185 (de Leon) Update

Information Agenda Items

5. Asset Allocation

Eric Baggesen

Rose Dean, Wilshire Associates Consulting

Allan Emkin, Pension Consulting Alliance

David Altshuler, StepStone

a. Public Asset Class Roles, Segments, and Benchmarks

6. External Manager and Investment Decision Updates

Sarah Corr a. Private Equity

Paul Mouchakkaa b. Real Assets

Dan Bienvenue c. Global Equity

Curtis Ishii d. Global Fixed Income Programs

Kevin Winter e. Opportunistic

Eric Baggesen f. Asset Allocation

Notes

1) Items designated for Information are appropriate for Committee Action if the Committee wishes to take action. Any Agenda Item from a properly noticed Committee meeting held immediately prior to this Board meeting, may be considered by the Board.

2) The hour designated as the earliest starting time for this meeting is not intended to communicate the expected duration (or ending time) of the preceding meeting.

3) Public comment may be taken on any agenda item. There is a three-minute limitation on each public comment, unless otherwise directed by the Committee Chair.

4) Board Members may attend meetings of committees of which they are not members and participate in the discussions during those meetings.

Pension and Health Benefits Committee

Meeting Agenda

Robert F. Carlson Auditorium May 16, 2017 Lincoln Plaza North 8:30 am 400 P Street, Sacramento, CA

COMMITTEE MEMBERS

Priya Mathur, Chair Dana Hollinger Michael Bilbrey, Vice Chair Henry Jones John Chiang Theresa Taylor Rob Feckner Betty Yee Richard Gillihan

AGENDA

Closed Session 8:30 am

(Government Code Sections 11126(c)(17) and 11126(h))

1. Call to Order and Roll Call

Shari Little 2. Health Plan Rate Strategy and Contracts

Kathy Donneson 3. Long-Term Care Procurement

Open Session 1:00 p.m.

Or Upon Adjournment or Recess of Finance & Administration Committee, Whichever is Later

1. Call to Order and Roll Call

Liana Bailey-Crimmins Donna Lum

2. Executive Report(s)

Liana Bailey-Crimmins 3. Consent Items

Action Consent Items:

a. Approval of the April 18, 2017, Pension and Health Benefits Committee Meeting Minutes

Liana Bailey-Crimmins 4. Consent Items

Information Consent Items:

Meeting Agenda Pension and Health Benefits Committee

Page 2 of 2

a. Annual Calendar Review

b. Draft Agenda for June 20, 2017, Pension and Health Benefits Committee Meeting

c. Federal Health Care Policy Representative Update

d. Federal Retirement Policy Representative Update

Information Agenda Items

Donna Lum Anthony Suine

5. Customer Services and Support Performance Update

Shari Little 6. Preliminary 2018 Health Rates and Contracts

Kathy Donneson 7. Medical and Pharmacy Benefit Strategies

Liana Bailey-Crimmins 8. Summary of Committee Direction

9. Public Comment

Notes

1) Items designated for Information are appropriate for Committee Action if the Committee wishes to take action. Any Agenda Item from a properly noticed Committee meeting, held immediately prior to this Board meeting, may be considered by the Board.

2) The hour designated as the earliest starting time for this meeting is not intended to communicate the expected duration (or ending time) of the preceding meeting.

3) Public comment may be taken on any agenda item. There is a three-minute limitation on each public comment, unless otherwise directed by the Committee Chair.

4) Board Members may attend meetings of committees of which they are not members and participate in the discussions during those meetings.

Finance and Administration Committee

Meeting Agenda

Robert F. Carlson Auditorium May 16, 2017 Lincoln Plaza North 10:00 a.m. 400 P. Street Sacramento, CA

Or upon adjournment of the Pension & Health Benefits Committee Closed Session —

Whichever is later

COMMITTEE MEMBERS

Richard Costigan, Chair Henry Jones Theresa Taylor, Vice Chair Bill Slaton John Chiang Betty Yee JJ Jelincic

AGENDA

Open Session 10:00 a.m.

Or Upon Adjournment of the Pension & Health Benefits Committee Closed Session, Whichever is Later

1. Call to Order and Roll Call

Marlene Timberlake D’Adamo 2. Executive Report

Marlene Timberlake D’Adamo 3. Consent Items

Action Consent Items:

a. Approval of the April 18, 2017, Finance and Administration Committee Meeting Minutes

Marlene Timberlake D’Adamo 4. Consent Items

Information Consent Items:

a. 2017 Annual Calendar Review

b. 2018 Annual Calendar Review

c. Draft Agenda for the September 19, 2017 Finance and Administration Committee Meeting

Action Agenda Items

5. Accounting, Financial Reporting, and Budgeting

Meeting Agenda Finance and Administration

Page 2 of 2

Marlene Timberlake D’Adamo Rose McAuliffe

a. 2017-18 Annual Budget Proposal (Second Reading)

6. Treasury Management

Marlene Timberlake D’Adamo Kristin Montgomery

a. Treasury Management Policy Review

Marlene Timberlake D’Adamo Kristin Montgomery

b. Treasury Management Reserve Policy Review

Information Agenda Items

7. Accounting, Financial Reporting, and Budgeting

Marlene Timberlake D’Adamo Rose McAuliffe

a. CalPERS Budget Policy (First Reading)

8. Program Administration

Marlene Timberlake D’Adamo Arnita Paige

a. Reporting on Participating Employers

Brad Pacheco b. Annual Stakeholder Perception Survey Report

Marlene Timberlake D’Adamo 9. Summary of Committee Direction

10. Public Comment

Notes

1) Items designated for Information are appropriate for Committee Action if the Committee wishes to take action. Any Agenda Item from a properly noticed Committee meeting, held immediately prior to this Board meeting, may be considered by the Board.

2) The hour designated as the earliest starting time for this meeting is not intended to communicate the expected duration (or ending time) of the preceding meeting.

3) Public comment may be taken on any agenda item. There is a three-minute limitation on each public comment, unless otherwise directed by the Committee Chair.

4) Board Members may attend meetings of committees of which they are not members and participate in the discussions during those meetings.

Board of Administration

Meeting Agenda

Robert F. Carlson Auditorium May 17, 2017 Lincoln Plaza North 8:30 am 400 P Street Sacramento, CA

BOARD MEMBERS

Rob Feckner, President Richard Gillihan Bill Slaton Henry Jones, Vice President Dana Hollinger Theresa Taylor Michael Bilbrey JJ Jelincic Betty Yee John Chiang Ron Lind Richard Costigan Priya Mathur

AGENDA

Closed Session 8:30 am

Chief Executive Officer’s Briefing on Performance, Employment, and Personnel Items (Government Code sections 11126 (a)(1), (e), and (g)(1))

Open Session 9:00 am

Or Upon Adjournment or Recess of Board Closed Session, Whichever is Later

Rob Feckner 1. Call to Order and Roll Call

Rob Feckner 2. Pledge of Allegiance

Rob Feckner 3. Board President’s Report

4. Executive Reports

Marcie Frost a. Chief Executive Officer’s Report (Oral)

Ted Eliopoulos b. Chief Investment Officer’s Report (Oral)

Rob Feckner 5. Consent Items

Action Consent Items:

a. Approval of the April 19, 2017 Board of Administration Meeting Minutes

b. Board Travel Approvals

6. Consent Items

Information Consent Items:

Meeting Agenda Board of Administration

Page 2 of 3

a. Board Agenda Item Calendar 2017

b. Draft Agenda for the June 21, 2017 Board of Administration Meeting

c. General Counsel’s Report

d. Communications and Stakeholder Relations

7. Committee Reports and Actions

Henry Jones a. Investment Committee (Oral)

Priya Mathur b. Pension & Health Benefits Committee (Oral)

Richard Costigan c. Finance & Administration Committee (Oral)

Michael Bilbrey d. Performance, Compensation & Talent Management Committee (Oral)

Dana Hollinger e. Risk & Audit Committee (Oral)

Theresa Taylor f. Board Governance Committee (Oral)

Action Agenda Items

Matthew Jacobs 8. Approval of Committee Delegations

Rob Feckner 9. Proposed Decisions of Administrative Law Judges

a. William H. Hampton

b. Robert Wolf and Kenneth Hale (Consolidated)

c. Teodulo Victorio, Jr.

d. Vickie Gould

e. Lori K. McCoy

f. William F. Roth (dec.) (Marilyn A. Roth, spouse)

g. April L. Quinonez

h. Donald Rhoads

i. Rachelle M. Ivy

j. Norma A. Fernandez

k. Mary Hendrix

l. Kay Donnelly

m. Kevin Peterson

n. Doris F. Pondexter

o. Timothy E. Iverson

Meeting Agenda Board of Administration

Page 3 of 3

Rob Feckner 10. Petition for Reconsideration

a. Bradley D. Heinz b. Harry R. Sagala c. San Juana N. Navarro d. Andre Metzler

Information Agenda Items

Doug Hoffner

Ron Hurle

11. IT Governance Overview

Mary Anne Ashley 12. State and Federal Legislation Update

Marcie Frost 13. Summary of Board Direction

14. Public Comment

Closed Session

Upon Adjournment or Recess of Open Session (Government Code sections 11126(a)(1), (e), and (g)(1))

Matthew Jacobs 1. Litigation Matters

a. Kesterson, et al. v. CalPERS, et al. (Los Angeles

County Superior Court, Case No. BC502628)

Notes

1) Items designated for Information are appropriate for Committee Action if the Committee wishes to take action. Any Agenda Item from a properly noticed Committee meeting, held immediately prior to this Board meeting, may be considered by the Board.

2) The hour designated as the earliest starting time for this meeting is not intended to communicate the expected duration (or ending time) of the preceding meeting.

3) Public comment may be taken on any agenda item. There is a three-minute limitation on each public comment, unless otherwise directed by the Committee Chair.

4) Board Members may attend meetings of committees of which they are not members and participate in the discussions during those meetings.